The initial public offer of Gemini Engi-fab Ltd was assigned 'CARE IPO Grade 2' by CARE that represents below average fundamentals. The company is planning to come out with an IPO of 55,00,000 equity shares having face value of Rs10 each at a price to be determined through the book building process. The IPO proceeds are intended to be deployed for setting up a new manufacturing workshop at Umbergaon, to meet the working capital requirements, general corporate purposes and issue expenses.
The grading is confined by Gemini's relatively small size operations, dependence on IPO proceeds for the proposed project completion, unorganized and highly dependence on IPO proceeds for the completion of the proposed projects, moderate corporate governance practices, limited experience of management in executing large projects, low entry barriers and unorganized and highly competitive industry in which the company operates.
Gemini Engi-fab Ltd was incorporated as a private limited company "Gemini Engi-Fab Private Limited" on January 12, 1998. It engaged in manufacturing and salvaging of process equipments through fabrication for various process industries, namely, cement, dairy, refinery, pharmaceutical, petrochemical, power and chemical
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